Laws that Govern Contracts: The UCC and the Common Law

Prior to beginning work on this discussion forum, review Chapters 10 and 11 of the textbook. Also review Unlocking the UCC: A Guide to Fair Business Transactions video, and other resources related to contract law (The

Nexis UniLinks to an external site.

database in the UAGC Library would be a useful source of information for this purpose). In addition, you may want to research Article 2 of the UCC and the common law of contracts available at the Uniform Commercial CodeLinks to an external site. website.

BUS670: Week 3 Unlocking the UCC: A Guide to Fair Business Transactions TranscriptDownload BUS670: Week 3 Unlocking the UCC: A Guide to Fair Business Transactions Transcript

The two primary areas of law that govern contracts are the Uniform Commercial Code (UCC) and the common law. While the UCC covers several different business transactions, the focus of this assignment will be the sale of goods which is governed by Article 2. The common law covers transactions of items which are not goods, so it relates to a major portion of the economy – namely, services.

Review the resources and then address the following:

• Explain the difference between a good and service in sales contracts.
• Discuss why it is easier to form a contract under the UCC than common law.
• Describe how a merchant is defined under the UCC. Why can this be an important concept in the sale of goods?
• Explain which law will govern a disputed contract if it involves both the sale of goods as well as an agreement to have services performed.
• Analyze the advantages and disadvantages of having the UCC govern sales contracts.